Shares of Digital Island (Nasdaq: ISLD), which provides networking services for e-commerce businesses, soared nearly 54 percent on Tuesday, rising 11-7/16 to 32-11/16. The spike came after the company announced a strategic partnership with BidCom, an Internet hub for the building industry.
This is the second major announcement Digital Island has made since going public last Tuesday. Last Wednesday, the company announced that payment-processing service provider PaymentNet had signed up as a customer. That news also greatly boosted the stock. Shares of Digital Island closed up 6-1/16 to 17-15-/16 — a gain of 51 percent — last Wednesday.
It’s been quite a run for Digital Island, which went public at $10 and closed its first day of trading at 11-7/8 after opening at just 9-1/16. Digital Island is one of many recent IPOs that are proving that the biggest pops may not happen on opening day. This is encouraging news for individual investors who often can’t get into IPOs at the offering price.